Fillable Omb No. 1845-0031 - General Forbearance Request (Page 3 of 4) in pdf

SECTION 5: DEFINITIONS

Capitalization is the addition of unpaid interest to the

A forbearance is a period during which you are allowed

principal balance of your loan. Capitalization causes more

to postpone making payments temporarily, allowed an

interest to accrue over the life of your loan and may cause

extension of time for making payments, or temporarily

your monthly payment amount to increase. Interest never

allowed to make smaller payments than scheduled. A

capitalizes on Perkins Loans. Table 1 (below) provides an

forbearance can be a mandatory forbearance, meaning that

example of the monthly payments and the total amount

your loan holder must grant the forbearance if you qualify

repaid for a $30,000 unsubsidized loan. The example loan

for the forbearance and supply all supporting

has a 6% interest rate and the example deferment or

documentation. A forbearance can also be a discretionary

forbearance lasts for 12 months and begins when the loan

forbearance, meaning that your loan holder may grant the

forbearance, but is not required to do so.

entered repayment. The example compares the effects of

The holder of your Direct Loans is the Department. The

paying the interest as it accrues or allowing it to be

capitalized.

holder of your FFEL Program loans may be a lender,

A co-maker is one of the two individuals who are joint

guaranty agency, secondary market, or the Department. The

borrowers on a Direct or Federal Consolidation Loan or a

holder of your Perkins Loans is an institution of higher

Federal PLUS Loan. Both co-makers are equally responsible

education or the Department. Your loan holder may use a

for repaying the full amount of the loan.

servicer to handle billing and other communications related

A deferment is a period during which you are entitled

to your loans. References to “your loan holder” on this form

to postpone repayment of your loans. Interest is not

mean either your loan holder or your servicer.

A subsidized loan is a Direct Subsidized Loan, a Direct

generally charged to you during a deferment on your

subsidized loans. Interest is always charged to you during a

Subsidized Consolidation Loan, a Federal Subsidized

deferment on your unsubsidized loans. On loans made

Stafford Loan, portions of some Federal Consolidation

under the Perkins Loan Program, all deferments are

Loans, Federal Perkins Loans, NDSL, and Defense Loans.

followed by a post-deferment grace period of 6 months,

An unsubsidized loan is a Direct Unsubsidized Loan, a

during which time you are not required to make payments.

Direct Unsubsidized Consolidation Loan, a Direct PLUS

An endorser is an individual who signs a promissory

Loan, a Federal Unsubsidized Stafford Loan, a Federal PLUS

note and agrees to pay the loan if the borrower does not.

Loan, a Federal SLS, and portions of some Federal

The Federal Family Education Loan (FFEL) Program

Consolidation Loans.

includes Federal Stafford Loans, Federal PLUS Loans, Federal

The William D. Ford Federal Direct Loan (Direct Loan)

Consolidation Loans, and Federal Supplemental Loans for

Program includes Federal Direct Stafford/Ford (Direct

Students (SLS).

Subsidized) Loans, Federal Direct Unsubsidized Stafford/

The Federal Perkins Loan (Perkins Loan) Program

Ford (Direct Unsubsidized) Loans, Federal Direct PLUS

includes Federal Perkins Loans, National Direct Student

(Direct PLUS) Loans, and Federal Direct Consolidation

Loans (NDSL), and National Defense Student Loans (Defense

(Direct Consolidation) Loans.

Loans).

Table 1. Capitalization Chart

Treatment of Interest with

Loan Amt.

Capitalized

Outstanding

Monthly

Number of

Total Repaid

Deferment/Forbearance

Interest

Principal

Payment

Payments

Interest is paid

$30,000

$333

120

$41,767

Interest is capitalized at the

$30,000

$1,800

$31,800

$353

120

$42,365

end

Interest is capitalized

$30,000

$1,841

$31,841

$354

120

$42,420

quarterly and at the end

SECTION 6: WHERE TO SEND THE COMPLETED FORBEARANCE REQUEST

Return the completed form and any documentation to:

If you need help completing this form, call:

(If no address is shown, return to your loan holder.)

(If no telephone number is shown, call your loan holder.)

Dartmouth College

603-646-3292

Student Loans

603-646-3455 FAX

6132 McNutt Hall, Room 103

Student.Loans@Dartmouth.EDU

Hanover, NH 03755-3541

Page 3 of 4

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